As U.S. Mayor goes to press, Congress is debating a $240 billion tax plan which includes a number of investment initiatives that the Conference of Mayors made a priority for the 106th Congress. However, the Administration is expressing serious concern with Medicare provisions and the school construction proposal in the bill, and enactment is still uncertain. The following summarizes key city provisions in the bill:

High Speed Rail: includes tax credits to support $10 billion over 10 years in bonds to finance high speed rail services by the states and Amtrak. Conference President Boise Mayor H. Brent Coles has emphasized these provisions, originally contained in S. 1900, as a first step in advancing a National Rail Policy for the 21st Century. New Markets: creates a new markets tax credit for equity investment in qualified low- income communities, valued at $15 billion over seven years.

Community Renewal and Empowerment Zones: creates 40 renewal communities and nine new empowerment zones (renewal communities would have a capital gains tax rate of zero).

Low Income Housing Tax Credit: increases the low income housing tax credit from $1.25 to $1.75 per capita, or a minimum of $2 million per state.

Private Activity Bonds: increases the private activity bond volume cap from $50 to $75 per capita, or a minimum of $225 million per state.

Brownfields: renews the brownfields "expensing" provision and eliminates current targeting restrictions, which will allow parties to deduct clean up costs regardless of the location.

Minimum Wage: provides a $1-an-hour increase in the minimum wage over two years, up to $6.15 an hour.

School Construction: allows $15 billion in tax-credit bonds for schools and an easing of arbitrage restrictions to allow for an additional two years of investment before construction. Congressional Democrats and the Administration contend this provision would not benefit enough schools, delay urgently needed construction and disproportionately help wealthy school districts. The Administration proposes $25 billion in bonds to build and renovate 6,000 public schools.

For updates on this legislation, as well as remaining FY 2001 budget items, see usmayors.org.